Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 204 - SECONDARY MARKET PROGRAM
Section 457-204-1 - Definitions

1. "Cap" means the maximum stated amount of liability of the Authority under any Program Document, stated as such, to any Holder.

2. "Certificate" means, as appropriate or as the context may require, the instrument evidencing ownership of an entire Guaranteed Portion or the instrument evidencing a fractional undivided ownership interest in a pool of Guaranteed Portions, each of which shall be an "insured certificate".

3. "Chief Executive Officer" means, the Authority's chief executive officer or a person acting under the supervisory control of the Chief Executive Officer.

4. "Eligible Loan" means a loan insured under the Authority's Mortgage Insurance Program ("Chapter 101") or Small Business and Veterans' Small Business Mortgage Insurance Programs ("Chapter 103'), except asset-based or revolving working capital loans or any other working capital loan which is not on regular amortization schedule for a period greater than one year

5. "Fiscal and Transfer Agent" or "FTA" means the Authority's agent in carrying out the central registration, initial settlement, and paying functions with respect to

6. "Guaranteed Portion" means that portion of an Eligible Loan which has been insured by the Authority.

7. "Holder" is a person or organization other than the originating Lender who holds the Guaranteed Portion of an Eligible Loan with no servicing responsibilities. When a Lender assigns the Guaranteed Portion to an assignee, the assignee becomes a Holder only when a Program Document in substance and content acceptable to the Chief Executive Officer is executed.

8. "Lender" is the person or organization making and servicing an Eligible Loan. The Lender is also the party requesting insurance of an Eligible Loan.

9. "Loan Insurance Agreement" means the agreement between a Lender and the Authority to insure loans pursuant to the Small Business and Veterans' Small Business Mortgage Insurance Programs or to insure a specific loan pursuant to the Mortgage Insurance Program.

10. "Loan Insurance Authorization" means a letter from the Chief Executive Officer to a Lender agreeing to insure a loan to a Borrower on the terms and conditions and subject to the requirements stated therein.

11. "Loan Note Guarantee" means the agreement executed by the Chief Executive Officer setting forth the obligations of the Authority to the Holder of a Certificate evidencing either the Guaranteed Portion of an individual Eligible Loan or a fractional undivided interest in a specific pool of Guaranteed Portions.

12. "Program" means the Secondary Market Program governed by this rule and the Act.

13. "Program Documents" mean any and all instruments and documents acceptable in form and content to the Chief Executive Officer prepared for use in and to effectuate the Program.

14. "Secondary Market" means any Holder which acquires the insured portion of Eligible Loans insured by the Authority under Chapter 101 or Chapter 103, or both, and those portions of the Act pursuant to which those rules have been promulgated.

15. "Unguaranteed Portion" means that portion of an Eligible Loan which is not insured or guaranteed by the Authority.